From farms to large retailers, Repórter Brasil shows the tortuous path linking coffee workers' exploitation to global consumers - June 2021

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From farms to large retailers, Repórter Brasil shows the tortuous path linking coffee workers' exploitation to global consumers - June 2021
June 2021

            From farms to large retailers, Repórter Brasil shows the
            tortuous path linking coffee workers’ exploitation to
            global consumers

            . 01 .
From farms to large retailers, Repórter Brasil shows the tortuous path linking coffee workers' exploitation to global consumers - June 2021
MONITOR #10
 STAFF

EDITOR
Marcel Gomes

“Certified coffee, rightless workers 2”
RESEARCH AND TEXT
Poliana Dallabrida (Field research and reporting)
André Campos (Supply chain assessment)

PHOTOS
Marcos Wieske

GRAPHIC DESIGN AND LAYOUT
Elaine Almeida

REPÓRTER BRASIL
ORGANIZATION OF COMMUNICATION AND SOCIAL PROJECTS

GENERAL COORDINATOR
Leonardo Sakamoto

EXECUTIVE SECRETARY
Marcel Gomes
                                                             CONTACTS
FINANCIAL COORDINATOR
                                                             biobr@reporterbrasil.org.br
Marta Santana
                                                             ONGReporterBrasil
ASSISTANT COORDINATOR
Marília Ramos                                                @reporterb

ADDRESS                                                      (55 11) 2506-6570
Rua Bruxelas, 169.                                           (55 11) 2506-6562
São Paulo - SP - Brasil                                      (55 11) 2506-6576
CEP 01259-020                                                (55 11) 2506-6574

                                                    . 02 .
From farms to large retailers, Repórter Brasil shows the tortuous path linking coffee workers' exploitation to global consumers - June 2021
CONTENTS
INTRODUCTION__________________________________________________________________________04
AN OVERVIEW OF THE INDUSTRY___________________________________________________________04
  Background_____________________________________________________________________________04
  Industry figures_______________________________________________________________________04
  Production hubs______________________________________________________________________05
  Export figures________________________________________________________________________05
  Coffee supply and its connection with global markets______________________________________05
WORKING CONDITIONS_________________________________________________________________06
  Types of labour violations identified____________________________________________________06
  Slave labour_________________________________________________________________________07
  Labour violations on certified properties________________________________________________08
  Informal labour_______________________________________________________________________08
  Labour law fraud_____________________________________________________________________10
  Precarious accommodation_____________________________________________________________11
  Disregard for agrochemical application rules______________________________________________12
  Budget cuts compromises enforcement__________________________________________________13
  Coffee harvesting in the context of Covid-19________________________________________________14
  Impacts of labour reform______________________________________________________________15
  Wages do not provide for living income______________________________________________16
CASE STUDIES_________________________________________________________________________17
  CASE 1 - Córrego da Prata Farm__________________________________________________________17
  CASE 2 - The Castelhana and Alvorada do Canta Galo Farms___________________________________19
  CASE 3 - Cedro II Farm__________________________________________________________________20
  CASE 4 - Terra Forte Group______________________________________________________________20
ROASTERS________________________________________________________________________23
  NKG________________________________________________________________________________23
  Melitta______________________________________________________________________________23
  UCC________________________________________________________________________________23
  Sucafina_____________________________________________________________________________24
RETAILERS____________________________________________________________________________24
  Carrefour____________________________________________________________________________24
  Coop_______________________________________________________________________________24
  Jumbo______________________________________________________________________________25
  Lidl________________________________________________________________________________25
  Metro______________________________________________________________________________25
  Tesco_______________________________________________________________________________25
FINAL REMARKS________________________________________________________________________26
  Using the “dirty list” is only part of the answer______________________________________________26
  Certification is flawed and needs to evolve_________________________________________________26
  Complying with the law does not guarantee living wages____________________________________27

                                               .3.
From farms to large retailers, Repórter Brasil shows the tortuous path linking coffee workers' exploitation to global consumers - June 2021
INTRODUCTION
    This report addresses labour       AN OVERVIEW                              production, the coffee indus-
and human rights violations that                                                try collapsed. In 1929, a year
affect coffee workers in Brazil,       OF THE INDUSTRY                          marked by crisis and the crash
the world’s largest producer and                                                of the New York Stock Exchange,
exporter. In addition, the inves-                                               Brazil produced 28.9 million sa-
tigation also maps connections         BACKGROUND                               cks of coffee but exported only
                                                                                14.2 million.
between the product and major
                                            Brazil is the world’s largest co-       Despite the crisis, Brazilian
multinational companies in the
                                       ffee producer and exporter. Three        production remained relevant in
coffee supply chain – including,       out of every five cups of coffee         the world market4 – and it still is,
at its final end, large European       consumed in the world come               despite the emergence of other
retailers that use imported cof-       from Brazilian farms. In 2019, the       producing hubs in Latin America,
fee in their private labels.           country accounted for 34.7% of           Africa and Asia.
    Part of this research is the       the world’s production.1
result of a field trip to southern
Minas Gerais in the second half
                                            Coffee farming in Brazil star-
                                       ted in the 18th century, with see-
                                                                                INDUSTRY
of 2020. The report also provides      dlings brought from French Guia-         FIGURES
updated macroeconomic data             na to the state of Pará. It found
about coffee produced in Brazil.       ideal soil in the Southeast region           In 2019, 3 million tonnes of co-
                                       and was the country’s economic           ffee were produced in Brazil – or
    As a result of months of in-
                                       driver after the so-called Gold          50 million sacks. Of the total har-
vestigation, it also points out
                                       Cycle at the turn of 19th century.       vested, 2 million tonnes were of
concrete examples of crimes
                                            During the period known as          the arabica type, the most consu-
and irregularities – including                                                  med coffee variant in the world,
                                       the Old Republic, between the
slave labour – that are directly                                                and 915.900 tonnes were of ca-
                                       late 19th century and the early
or indirectly linked to the bu-        20th century, coffee was Bra-            nephora, also known as conilon or
siness chains of local buyers,         zil’s main export product. That is       robusta – widely used to produce
exporters, roasters and, finally,      when the country underwent its           instant coffee.5
top world retailers.                   urbanization process, expanding              Coffee plantations covered 1.8
    The findings show that there       rail lines and modernizing ports         million hectares – 990,800 million
is still a long way to go to guaran-   to facilitate transportation of co-      in Minas Gerais alone, followed by
tee a supply chain that ensures        ffee production.2                        Espírito Santo, with 379.1 million
decent working conditions and               From 1880 to 1881, the coun-        hectares. The two states are the
wages for coffee workers.              try produced 3.7 million 60-kilo-        largest producers in Brazil. Of the
                                       gram sacks of coffee. Ten years          total coffee output in 2019, 49.7%
                                       later, between 1890 and 1891,            was harvested in Minas Gerais
                                       production reached 5.5 million           and 26.2% in Espírito Santo, which
                                       sacks and jumped to 16.3 million         produced 1.4 million and 789,600
                                       in the 1901-1902 harvest.3               tonnes, respectively.6
                                            With the fall in international          Preliminary figures for the
                                       prices and the country’s surplus         2020 harvest show that produc-

                                                      . 04 .
From farms to large retailers, Repórter Brasil shows the tortuous path linking coffee workers' exploitation to global consumers - June 2021
tion was larger than that of the
previous year: between 57 and
                                     dônia, which harvested 137,100
                                     tonnes of conilon coffee, produc-
                                                                            COFFEE SUPPLY
62 million sacks of coffee grown     tion takes place on small proper-      AND ITS
on 1.88 million hectares.7 Increa-   ties spread all over the state.12 13   CONNECTION
se in production from one year
to the other is explained by the                                            WITH GLOBAL
two-year cycle of Brazilian pro-     EXPORT                                 MARKETS
duction, which alternates larger
and smaller harvests. This is due
                                     FIGURES
                                                                                Brazil’s coffee industry inclu-
to the characteristic of the coun-                                          des 264,200 rural establishments,
                                         Coffee remains as one of the
try’s plantations, which produce
                                     top Brazilian export products.         of which 188,300 produce arabica
in full sun and need to recover
                                     Trade in unroasted coffee ranked       coffee and 75,900 work with coni-
between harvest seasons.
                                     11th among Brazilian exports           lon. Arabica production in Minas
                                     in 2020, together with fuel oils       Gerais concentrates most of these
                                                                            establishments: 119,700, accor-
PRODUCTION                           from petroleum. This accoun-
                                     ts for 2.4% of the country’s to-       ding to data from the 2017 Agri-
HUBS                                 tal foreign sales. Coffee ranks        cultural Census.18
                                     8th among agribusiness export              The coffee harvested on the
    Of the 1.49 million tonnes of    items.14                               properties is passed on to pro-
coffee produced in Minas Gerais          Brazilian coffee exports be-       ducer cooperatives, local trading
in 2019, 1.47 million were of the    tween January and December             warehouses known as “brokers,”
arabica type – which accounts for    2020 totalled US$ 4.9 billion.         or coffee trading companies that
70.6% of domestic output.8 Pro-      During that period, 2.3 million        include multinational groups such
duction hubs in the state are the    tonnes of coffee were traded           as Singapore-based Olam Interna-
regions of Matas, Cerrado, Man-      worldwide – or 39.7 million sa-        tional and Germany’s Neumann
tiqueira, Chapada, and Southern      cks.15                                 Kaffee Gruppe (NKG). In the next
Minas Gerais.9                           As the world’s largest produ-      stage, green coffee beans are sold
    In the same period, 81% of the   cer, Brazil is followed by Vietnam     to roasting and grinding industries
coffee produced in Espírito San-     and Colombia, with 30.7 and            and to instant coffee producers.19
to was of the conilon variety. Na-   14.1 million sacks, respectively,          Exports may occur in various
tionwide, the state accounts for     according to data from 2019.           ways: directly between industries
69.8% of the production of that      Brazilian production in that year      and producers, sold by producer
type of coffee.10 Its production     was 58 million sacks of coffee.16      cooperatives, or intermediated by
hubs are the state’s North region,       The United States and Ger-         coffee trading companies.
known as Conilon Capixaba, and       many are the two main destina-             In the domestic market, the
the southern Mountains of Espíri-    tions for Brazilian coffee. They       largest companies linked to the
to Santo.11                          account for 18.19% and 16.86%          Brazilian Coffee Industry Associa-
    Coffee production is also re-    of exports, respectively. Belgium      tion, which represents roasting
levant in São Paulo, Bahia and       (8.24%), Italy (7.27%) and Japan       and grinding industries, are 3Co-
Rondônia. In 2019, the state of      (5.11%) complete the list of ma-       rações, Jacobs Douwe Egberts
São Paulo harvested 290,400 ton-     jor importers. These countries re-     Brasil, Indústria de Alimentos Ma-
nes. Its production was concen-      ceive international shipments at       ratá, Melitta do Brasil and Mitsui
trated in the regions of Mogiana     their ports but are not necessa-       Alimentos.20 In February 2020, the
and Centre-Western São Paulo.        rily the final destinations for con-   3corações group acquired Mitsui
In Bahia, which harvested coffee     sumption of processed coffee.17        Alimentos’ roasted and ground co-
on 180,200 hectares in 2019, pro-                                           ffee division.21
duction zones are located in the
Plateau and Cerrado areas. In Ron-

                                                   . 05 .
From farms to large retailers, Repórter Brasil shows the tortuous path linking coffee workers' exploitation to global consumers - June 2021
OLAM facilities at São Sebastião do Paraís, MG

 WORKING                                                  SLAVE
                                          TYPES OF LABOUR LABOUR
 CONDITIONS                               VIOLATIONS
                                          IDENTIFIED         From 2016 to 2020, 700 workers
                                                          were rescued from slave labour in
                                                  Employing unregis-      46 different coffee farms. In the
    Despite being a world referen-                tered labour            same period, across the country,
ce, the industry is still pervaded                                        4,564 slave workers were rescued
                                                                          in all economic sectors and acti-
by labour irregularities. In addi-               Failing to pay legal
                                                                          vities. In 2019 alone, 106 workers
tion, cases of slave labour are still            benefits
                                                                          were rescued from 12 properties
found virtually every year during                                         dedicated to coffee farming. In
federal government inspections,                                           2020, 140 workers were rescued
                                                 Noncomplying with
harvest after harvest.                                                    in the coffee sector. The inspection
                                                 the rules for agroche-
    Information gathered by Re-                  mical use                and rescue operations took place
pórter Brasil shows that these                                            on nine farms.22
cases include farmers supplying                  Failing to provide            According to Article 149 of Bra-
companies and cooperatives that                  Personal Protective      zil’s Penal Code, slave-like labour
are part of the business network                 Equipment (PPE)          includes four elements: forced
of large global retail chains.                                            labour, debt bondage, strenuous
                                                                          working hours, and degrading con-
                                                  Providing preca-
                                                                          ditions. Any one of the four ele-
                                                  rious accommoda-
                                                                          ments is enough to configure the
                                                  tion
                                                                          crime, whose penalties includes fi-
                                                                          nes and 2-8 years’ imprisonment.23

                                                     . 06 .
From farms to large retailers, Repórter Brasil shows the tortuous path linking coffee workers' exploitation to global consumers - June 2021
Larissa Goulard, network coor-       had to buy everything,” he recalls.    res, from Varginha (MG), took part
dinator at the Reference Centre in            In addition to mattresses and     in two inspection operations that
Human Rights in Southern Minas           food, workers were forced to buy       rescued workers between July and
Gerais (CRDH Sul de Minas), says         portable machines that help in         August 2020. In one of them, the
that the problem is even more se-        harvesting coffee, known as der-       workers had come from a poor
rious than that revealed by official     riçadeiras, incurring debts of R$      village near the farm.
statistics on workers rescued. “Lack     2,500-R$ 3,000 before they even             “Employers usually don’t care
of reporting is a major obstacle to      started harvesting. “Machine,          about who provides the service.
combat slave labour crimes. Even         maintenance, gasoline. We had          They just want the job done,” says
so, our region has one of the hi-        to buy everything. We also had to      Passos. “What happens? A mid-
ghest rates of slave labour in Brazil,   pay for food. I wasn’t registered      dleman goes to the village’s squa-
mainly in coffee plantations.”           either, and they had promised for-     re and recruits people. He sets the
    In coffee farming, slave labour      mal contracts,” says João*.            payment for their harvest work
affects especially migrants, who              “The middleman himself en-        and people go. It’s all informal.
work during harvest season from          courages the workers to buy por-       When that happens, everything
April to September. Coming from          table harvesters and then takes        already started wrong.”
the state of Bahia and the Jequi-        them to a store he knows, which             Without labour monitoring,
tinhonha Valley area in northern         sells on credit,” points out labour    the industry is open to child la-
Minas Gerais, workers arrive in          inspector Leandro Marinho. In a        bour. “It happened in one of the
groups, enlisted by labour mid-          quick search on the internet, it is    farms inspected in the presence of
dlemen known as “cats.” “In these        possible to find that machine for      the prosecutors. There were three
areas, there is less money in circu-     less than R$ 700.00. “It’s a work      teenagers between 14 and 15
lation and lower access to educa-        tool, which should be provided to      years of age,” she explains. Farm
tion. People will migrate to work        them, and it’s not being provided.     work is considered one of the
in whatever job they can find,”          If employers want faster harves-       worst forms of child labour, accor-
says Leandro Marinho, a labour           ts, they should supply the equip-      ding to the International Labour
inspector in Varginha (MG).              ment.”                                 Organization.24
    João*, 32 years old, is an                Marinho says that lack of ac-          In the other operation, 13
example of a person who migrates         cess to drinking water or toilets      workers from towns in Bahia were
to work in coffee farming every          and poor accommodation cha-            rescued from slave-like conditions.
year. Born in Cristália, in the Jequi-   racterize most rescue cases in ru-     The facility adapted as accommo-
tinhonha Valley, he says that this       ral areas. “You’ll find permanent      dation was located next to the cor-
is his best source of income, since      farm workers in bad houses, with       ral. “Everyone was sort of huddled
opportunities near his hometown          accrued vacations, etc., but the       up there,” she recalls. “They were
are scarce. “Here, most of the jobs      worst accommodations are those         already highly indebted and no
are in coal, and it’s very hard work,    for migrant workers, who usually       PPE had been provided.”
so people from Cristália, Grão Mo-       stay in abandoned houses. So-               A new profile of harvest
gol and Botumirim always work in         meone just brooms it quickly and       workers comes to the attention
the coffee harvest in southern Mi-       that’s it,” he explains.               of labour inspector Leandro Ma-
nas Gerais.”                                  João* never stopped harves-       rinho. In previous seasons, they
    He was rescued from slave-like       ting coffee, even after the rescue.    used to be mostly single men.
labour during an inspection ope-         He says conditions have changed        Now, entire families started to
ration in July 2018. As he recalls,      little since the operation that res-   work in harvest, especially young
upon arriving at the property re-        cued him three years ago. “Things      couples. Fathers go to work while
commended by another colleague           remain pretty much the same in         older children look after the litt-
who had already worked there,            the industry.”                         le ones and mothers cook. “They
he was faced with very precarious             Precarious work is not exclusi-   used to pile up employees. Now,
accommodation. “There was no             ve to migrant labour. Labour Pro-      they pile up employees and their
house, there was no mattress. We         secutor Letícia Moura Passos Soa-      families,” Marinho observes.

                                                       . 07 .
From farms to large retailers, Repórter Brasil shows the tortuous path linking coffee workers' exploitation to global consumers - June 2021
LABOUR                                    The cases analysed by Repór-
                                      ter Brasil in 2020 also involve ow-
                                                                                  Union leader Jorge Ferreira
                                                                              dos Santos explains that infor-
VIOLATIONS ON                         ners of certified farms that supply     mality takes away workers’ basic
CERTIFIED                             coffee to retail chains in Brazil and   rights. “Workers lose vacations,
                                      abroad [see more in the chapter         13th salary, paid rest periods,
PROPERTIES                            on CASE STUDIES].                       and also the possibility of reti-
                                                                              ring with a pension. If they have
    Although slave labour is com-                                             an accident while working in co-
mon on certified properties, the-
se farms are not free from other      INFORMAL                                ffee, no one is going to have that
                                                                              family’s back. From a more hu-
labour irregularities, according to   LABOUR                                  mane point of view, such coffee
labour inspector Humberto Mon-                                                creates poverty.”
teiro Casmamie, head of the Mo-            Estimativas de 2014 indica-            Jorge dos Santos is the lea-
bile Inspection Group of the state    vam qEstimates indicated that six       der of the Coordination of Ru-
of Minas Gerais. “Payment below       out of 10 coffee workers were un-       ral Employees of the State of
what had been agreed, bad food,       registered in 2014.26 There is no       Minas Gerais (ADERE) and has
no PPE and no toilets are some of     recent research to confirm chan-        been following the progress and
the violations found in large far-    ges in this scenario. The general       setbacks of the state’s coffee in-
ms,” he says.                         numbers on informal work in Bra-        dustry for 14 years – especially in
    In December 2016, Repórter        zil show that informality has been      southern Minas Gerais, Brazil’s
Brasil released a study on several    on the rise, reaching 41.1% of the      largest producing area.
labour irregularities on certified    employed population in 2020, or             “During harvest season, you
coffee farms, including unregis-      38.4 million people.27                  have, say, 2,000 workers in a gi-
tered workers, illegal wage dis-           The share of registered sea-       ven municipality. In the off-sea-
counts and disregard for safety       sonal workers is still small in the     son, that number falls to 600
standards.25 In addition, farm ow-    coffee sector. According to data        workers. Both producers and
ners certified by UTZ, Rainforest     from 2017, only 16% of farm             workers know that there is a re-
Alliance and Starbucks’s C.A.F.E.     workers had contracts that las-         serve labour pool. Workers know
Practices have been fined in re-      ted up to 5.9 months, which is          that the season is over, jobs are
cent years for keeping workers in     the duration of the coffee har-         over, so they won’t run any risks
slave-like conditions.                vest season.28                          and then they end up accepting

Rural workers in a coffee farm
                                                     . 08 .
From farms to large retailers, Repórter Brasil shows the tortuous path linking coffee workers' exploitation to global consumers - June 2021
the conditions imposed by em-                  Not even union leaders, who       population of about 14,000.30
ployers,” dos Santos concludes.           understand the irregularity of in-     “We estimate that farm owners
     Unregistered labour does             formal labour, escape that reali-      have registered less than 10% of
not occur only among harvest              ty. This is the case of Roberto de     seasonal workers this year,” the
workers during harvest season.            Souza Costa, president of the          union leader says.
Labourers are also hired on a dai-        Union of Rural Workers of Ibira-           In Ibiraci, workers are staying
ly basis for different tasks in co-       ci, in southern Minas Gerais. He       more often in houses in town
ffee plantations and are usually          earns about R$ 70.00 per day           rather than in farm accommoda-
not registered. They are known            worked. “You have no other op-         tion. “Employers now avoid lea-
as diaristas (day labourers) or           tion. If you ask the boss to regis-    ving people in the farms. Nowa-
turmeiros (group workers) – in            ter you, he’ll say it’s expensive      days, they pile up migrants from
the latter case, when the job             and won’t do it,” Costa says.          Bahia in houses here in town,”
involves a fixed group that wan-               The municipality of Ibiraci has   says Eliane dos Santos, vice-pre-
ders from farm to farm.                   had the highest number of noti-        sident of the rural workers union
     Idomeno José de Andrade, 60          fications for slave labour since       in Ibiraci.
years old, has worked as a day la-        the beginning of the time series
bourer in Minas Gerais’s coffee           in 1995 – a total of 185 cases.29
farms since 1988. However, he was              Even with the pandemic,
formally registered only during a         some 2,000 migrant workers
short period – 12 years. “Today,          came to town for the 2020 cof-
it’s hard for me to retire because I      fee harvest. In 2019, they were
wasn’t registered,” he says.              6,000 – almost half of the local

Idomeno José de Andrade, coffee worker at 60 years old

                                                         . 09 .
From farms to large retailers, Repórter Brasil shows the tortuous path linking coffee workers' exploitation to global consumers - June 2021
LABOUR LAW                           butions and the so-called Time of
                                     Service Fund (FGTS).
                                                                          from Adere-MG.
                                                                              According to reports by union
FRAUD                                   In the coffee sector, both per-   leaders, labour inspectors and la-
                                     manent and seasonal workers are      bour lawyers heard by Repórter
    Some of the labour rights gua- often registered with wages be-        Brasil, it is also common for regis-
ranteed by Brazilian law inclu- low what is actually paid. That is a      tered employees to have accrued
de maximum 44 weekly working maneuverer to reduce employers’              vacations and not be paid their
hours, paid vacations, paid rest on expenses. “The worker produced31      overtime correctly. There are still
Sundays, paid overtime, unem- R$ 2,000.00, but his paycheck says          cases in which employers do not
ployment insurance, paid sick R$ 1,045.00 [Brazil’s minimum               pay their duties related to em-
leave, and severance payment wage in 2020]. Then his 13th sa-             ployers’ basic benefits – FGTS and
in case of dismissal. Employers lary and Time of Service Fund be-         social security contribution.
must pay other mandatory bene- nefits will be calculated over R$
fits such as social security contri- 1,045.00,” says Jorge dos Santos,

Jorge dos Santos, unionist in Minas Gerais

                                                  . 10 .
PRECARIOUS                           Since April 2019, 49-year-old
                                  Mário* has lived with his wife in
                                                                      for rent but does not commit
                                                                      to doing the necessary mainte-
ACCOMMODA-                        a house on a coffee farm in Je-     nance on the house. When the
TION                              suânia, southern Minas Gerais.      couple moved to the farm, they
                                  The farm supplies coffee to the     went two months without elec-
    Precarious       accommoda- Regional Cooperative of Coffee        tricity. “The people who used to
tion is not exclusive to seasonal Farmers of the Verde River Valley   live here didn’t pay their bill and
workers. In some coffee farms, (Cocarive), based in Carmo de          the company cut off the electri-
permanent workers often live Minas. The cooperative infor-            city supply. I’d ask him to leave
within property boundaries. In med Repórter Brasil that it had        work early to solve the problem,
2020, Repórter Brasil visited not been notified about alleged         but he wouldn’t let me. It took
some examples of houses where illegal practices on the property.      a long time for him to solve that
lack of maintenance and water        The farm owner discoun-          situation,” he says.
shortage were constant.           ts part of Mário’s wages to pay

                                  In addition to lack of electrici-   were told to isolate at home. “I
                                  ty, the couple and other workers    spent two days without water
                                  who live on the farm face water     in that period,” he says. “When
                                  shortages, even during the pan-     I went to complain, the boss got
                                  demic. In October this year, Má-    mad at me and said he was going
                                  rio* and his wife were in contact   to settle our accounts so we could
                                  with a person who later tested      leave.”
                                  positive for Covid-19, and they

                                               . 11 .
DISREGARD FOR                         are applied.
                                          Camila* and the couple Ma-
                                                                             ded by Camila* shows a tractor
                                                                             spraying it on coffee trees next
AGROCHEMICAL                          ria* and Junior* worked on the         to where the group worked. “We
APPLICATION                           same coffee farm in São Tomás          used to take poison showers,”
RULES                                 de Aquino, southern Minas Ge-
                                      rais, for six, five and eight years,
                                                                             she recalls.
                                                                                 Junior* was also in charge of
    Coffee workers from proper-       respectively. They left in Fe-         applying agrochemicals with a
ties where labour irregularities      bruary this year and now they          sprayer attached to him, backpa-
were found told Repórter Brasil       have gone to court to be paid for      ck-style. He says that headaches
that they had never been provi-       overtime and other labour rights       were common after doing that.
ded with full Personal Protective     denied during that period. Des-        “I used to work with the Roun-
Equipment (PPE).                      pite being permanent workers,          dup poison sprayer.32 Sometimes
    During harvest, PPE includes      they were never registered.            it would break and I’d go to the
gloves, boots and leg protectors          They had to bring their own        supervisor and say: ‘Look, this
to prevent snake bites. In the rest   work tools, food and water from        sprayer is not working.’ It was as
of the year, lack of equipment        home. In addition, they were of-       good as saying nothing. He just
compromises workers’ health,          ten exposed to poisons applied         wouldn’t change it.”
especially when agrochemicals         to the plantation. A video recor-

Fertilizer application by tractor

                                                    . 12 .
BUDGET CUTS                                reduced the money for inspec-
                                           tions against slave labour by up to
                                                                                 situation is critical,” he says. “In
                                                                                 January 2007, when I joined the
COMPROMISES                                70%.33 The Bolsonaro administra-      agency, we had 14 inspectors for
ENFORCEMENT                                tion imposed the worst cut since      47 towns. We are now eight ins-
                                           2013, when the time series began.     pectors for 52 cities. And the bu-
    Recent cuts on the budget of           For 2021, R$ 24.1 million were        dget for displacements is getting
the Ministry of Economy’s Labour           earmarked for operations to en-       smaller every year.”
Inspection Secretariat (SIT) and re-       force occupational health and sa-         Even with budget cuts and the
duction in the number of labour ins-       fety rules and labour benefits, and   pandemic, 2020 saw a slight in-
pectors for field inspections com-         for combating slave labour.34         crease in the number of workers
promise the fight against labour               In Minas Gerais, labour inspec-   rescued from coffee farms com-
violations and slave labour in Brazil.     tor Leandro Marinho says that the     pared to the same period in 2019:
    The scenario has been wor-             agency is understaffed and cannot     140 people were rescued in 2020,
sening since 2017 under Michel             investigate all complaints. “Regar-   over 106 in the previous year.35
Temer’s administration, which              ding the number of inspectors, the

Federal labour inspector Leandro Marinho

                                                         . 13 .
COFFEE HARVES-                            nas Gerais enacted a specific law   pany (Emater-MG) published a
TING IN THE                               on coffee farms, which provides     booklet with guidelines for pre-
CONTEXT OF                                for the adoption of measures to     venting the new coronavirus
COVID-19                                  protect harvest workers.36 The      during harvest season.37
                                          state-owned Technical Assistan-
    In May 2020, the state of Mi          ce and Rural Extension Com

Photo of workers at rest without a mask

    “None of that was observed in
the inspections I took part,” says
Varginha Labour Prosecutor Le-
tícia Moura Passos Soares. “No-
body was wearing masks. There
was no distancing, buses were
not being cleaned. Absolutely no-
thing. No control whatsoever, no
guidance.”
                                                                                  Labour Prosecutor Letícia Moura
                                                                                  Passos Soares

                                                       . 14 .
IMPACTS OF LABOUR
REFORM
                                               Drastic drop in union funds
                                               The end of mandatory union contributions, which came into
                                               force with the labour reform approved in November 2017,
                                               profoundly changed union organization in Brazil, especially
                                               in rural areas. Between 2017 and 2019, revenues from the
                                               so-called union tax are estimated to have fallen by 96%.91
                                               “We had eight unions in this area, but only two are still ope-
                                               rating, and they are falling apart. This one won’t last six more
                                               months,” says Izidio Barbosa dos Santos, president of the
                                               Union of Rural Workers of São Sebastião do Paraíso (MG).
                                               “At some point the union used to receive R$ 40,000 a year
                                               in contributions. In 2020, it received R$ 348.00. I don’t even
                                               know these enlightened people who contributed,” explains
                                               Izídio dos Santos. About 1,600 people work on coffee farms
                                               in the municipality.ossui cerca de 1,6 mil trabalhadores em
                                               fazendas de café.
                          Izídio dos Santos

                                              Cancelling membership
                                              A strategy to drive workers away from unions has been im-
                                              plemented in southern Minas Gerais, Brazil’s largest coffee
                                              producing hub. According to union leaders interviewed by
                                              Repórter Brasil, accounting firms hired by landowners write
                                              standard membership cancellation letters for workers, who
                                              just have to sign them and deliver them to their unions.

                          Eliane dos Santos

                                              Their purpose would be to demobilize the category and weaken
                                              union work. “I’m not even sure if workers know what they are
                                              signing. When they come to bring the document here, we try to
                                              talk them out of it, but it’s no use. They already have their minds
                                              made up against the union,” says Eliane dos Santos, a union
                                              leader in of Ibiraci (MG).
                                              Roberto de Souza Costa, the president of the rural workers union
                                              in Ibiraci, explains: “Accounting firms tell them: ‘You don’t need
                                              the union anymore. If you need to terminate your contract, to
                                              retire, you don’t have to go to the union. What do you need
                                              the union for?’ Then, when harvest season ends, they settle
                                              everything within companies, which cheat on their employees,
                                              and then the workers come here with their termination papers
                                              signed without understanding anything. I show them they have
                                              accrued vacations and other unpaid benefits, and they ask me:
                                              ‘What should I do now?’ Then I show them their letters cance-
                                              lling union membership, and that’s when they realize it.”
  Standard membership cancellation letters

                                                    . 15 .
WAGES DO NOT                         R$ 1,130.00. For 2021, the gover-
                                     nment established a minimum of
                                                                          forward, unfortunately.”
                                                                              On the other hand, the last har-
PROVIDE FOR                          R$ 1,110.00 – R$ 2.00 below the      vest was better than the previous
LIVING INCOME                        figure corrected for inflation.38    one. Even with the novel corona-
                                     With the end of the government’s     virus pandemic, international cof-
    A living wage is one that gua- minimum wage increase policy, fa-      fee prices remained high in 2020,
rantees workers’ autonomy and milies’ purchasing power has been           varying between R$ 590.00 and R$
allow them to provide their fami- directly affected.                      620.00 per sack.39 The pattern of
lies with decent lives. According        Registered workers in sou-       rising prices remains in 2021. On
to the Global Living Wage Coali-     thern Minas Gerais – the largest     January 8, arabica coffee was sold
tion, a living wage includes food, coffee production hub in Brazil –      at R$ 625.71 per sack.40
water, housing, education, health earn about one minimum wage.                “Ten years ago, they used to sell
care, transportation, clothing, and For employees who live within         coffee at R$ 200.00 or R$ 280.00.
other essential needs as well as coffee properties, around 20% is         Workers were paid R$ 10.00 per
provision for unexpected events.     discounted to pay for rent, water    measure. In 2020, coffee reached
    Few coffee producing muni- and electricity.                           R$ 612.00 and they still paid the
cipalities have their own labour         “What is left is something       same R$ 10.00 per measure,” the
collective agreements. When the-     around  R$ 800.00,” Jorge dos San-   union leader says.
re is such an agreement, the base tos estimates. “That’s not a salary         “When we have hearings, em-
salary is very close to the national that values ​​your work so you can   ployers often argue that the indus-
minimum wage. In 2020, when improve your social situation, so             try is undergoing a crisis, but what
Brazil’s minimum wage was R$ you can progress in life. Just look          happens when the industry makes
1,045.00, coffee workers used to at the outskirts of cities that pro-     big profits? Weren’t they suppo-
earn something between that and duce coffee. People are not going         sed to provide more benefits?,”

Aerial view of a coffee farm in São Sebastião do Paraíso (MG)

                                                                . 16 .
prosecutor Soares asks.                    Rainforest Alliance and UTZ are     Alfenas area. The organization es-
    In June 2020, certifier Rain-      among the largest socio-environ-        timated the gross living wage for
forest Alliance developed a me-        mental certifications in the world      the south and southwest of the
thodology for rural producers to       and started merging in 2017. The        state at R$ 1,629.00. At the time,
know how far they were from op-        new brand will retain only the for-     the minimum wage – and the base
timal earnings and could calcula-      mer name.                               salary for workers in the industry –
te what a living wage would be in          In April 2016, the Global Living    was R$ 788.00,42 that is, less than
their towns.41 Paying living wages,    Wage Coalition published a study        half that amount.
however, will not be a criterion for   conducted in Minas Gerais muni-
granting the certification label.      cipalities around the Guaxupé and

CASE
STUDIES
     This chapter describes specific
cases of labour irregularities and
                                       THE PROBLEMS                            passed on to the farm owner.
                                                                                   While Maria Júlia Pereira was
slave-like labour found in coffee                                              not notified, workers interviewed
                                           In July 2018, an inspection ope-
farms. Repórter Brasil investigated                                            in November 2020 by Repórter
                                       ration found 15 people, including
the connections between these                                                  Brasil claim she used to pay them.
                                       a 17-year-old teenager, working in
properties and retail chains in Bra-                                           They also say that the Córrego da
                                       slave-like conditions on the farm’s
zil and abroad.                                                                Prata Farm was a supplier of cof-
                                       coffee harvest.44 At the time of the
                                                                               fee seedlings to be replanted on
                                       rescue, they told Repórter Brasil
                                                                               other properties belonging to her.
                                       that they used to work from 6 am
CASE 1 – CÓRREGO                       to 10 pm. The group had come                João*, 32 years old, was among
                                                                               the people rescued in 2018. He
DA PRATA FARM                          from Minas Gerais’s Jequitinho-
                                       nha Valley area and they said that      says the housing conditions were
                                                                               precarious. “When we got there,
                                       they had not have a single day off
    The Córrego da Prata Farm                                                  there was no house, there was no
                                       during the 90 days they worked
in Muzambinho, southern Minas                                                  mattress. We had to buy every-
                                       there, and they only stopped har-
Gerais, belongs to Maria Júlia Pe-                                             thing,” he recalls.
                                       vesting coffee on rainy days. “And
reira, who owns another coffee                                                     In addition to mattresses and
                                       if we stopped, the boss would get
estate in Nova Resende, 37.5 km                                                food, workers were forced to buy
                                       angry,” one of the workers said
away from Córrego da Prata. She                                                portable machines that help in
                                       during the inspection operation.45
is the former sister-in-law of Fe-                                             harvesting coffee, incurring debts
                                           At the time of the rescue, the
                                                                               of R$ 2,500-R$ 3,000 before they
deral Deputy Emidinho Madeira          property was leased to Elias Rodri-
                                                                               even started harvesting. “Machi-
(PSB). Madeira’s father Emídio         go de Almeida, who was notified
                                                                               ne, maintenance, gasoline. We
Madeira owns two coffee farms          by the operation and included in
                                                                               also had to pay for food. I wasn’t
where cases of slave labour were       the “dirty list” in April 2020.46 Ac-
                                                                               registered either, and they had
found in 2015 and 2016.43              cording to the inspection, he used
                                                                               promised formal contracts.”
                                       to keep 80% of the coffee produ-
                                                                                   In addition to the slave labour
                                       ced while the remaining 20% ​​were

                                                      . 17 .
case, Maria Julia Pereira is a de-     worked on the farm on a perma-         visit the site and did not know how
fendant in other labour-related        nent basis. The lawyer explains        it was managed,” he says. “You
lawsuits. One of these lawsuits        that proving workers’ claims is one    can’t hold someone accountable
was filed by a 42-year-old worker      of the most difficult parts of the     for something she wasn’t even
named Marcelo.* According to his       process. “It’s very hard to bring      aware of.”
report, he worked as a daily labou-    witnesses in these cases. Some
rer on the property from May 2018      people are afraid to testify becau-
to June 2019. He used to perform       se they think they won’t be able to    CERTIFICATIONS
several tasks such as planting cof-    get a job afterwards.”
fee seedlings, applying agrochemi-                                                 In 2019, Maria Julia Pereira’s
cals, harvesting and doing mainte-                                            Boa Vista/Coutinho Farm, in Nova
nance in the property.
    When he was fired, he says,
                                       WHAT THE FARM                          Resende, was granted Starbucks’s
                                                                              C.A.F.E. Practices certification. The
he was given his own work papers       OWNER SAYS                             farm is part of a selected group of
back, which the employer had                                                  certified properties that supply co-
been keeping. However, only a 45-          At the time of the rescue          ffee to trading company Exporta-
day period had been registered         operation, in August 2018, Maria       dora de Café Guaxupé, according
on it, rather than the 13 months       Júlia Pereira sent a note to           to the company itself.
he had worked on the farm as a         Repórter Brasil, through her lawyer         The Santa Rita das Paineiras
permanent employee. In the law-        Thiago Dini, in which she claimed      Farm – Córrego da Prata’s new
suit, the worker seeks acknowle-       to have bought the farm in late        name – has also held the UTZ cer-
dgement of the employment re-          2016 and leased it in December         tification since 2019. In April 2020,
lationship for all months worked       of the same year to Elias Almeida,     Elias Rodrigo de Almeida, then the
and payment of overtime.               and that she was “unaware of any       property’s lessee, was included in
    In addition to working unre-       procedures and occurrences on          the “dirty list” due to the 2018 sla-
gistered, Marcelo* states that         that property.” The lawyer, who        ve labour case.
his working hours were similar to      also represents Almeida, said that
those of workers rescued in 2018       he had “outsourced personnel”
during the coffee harvest, with        and that he was “a victim, just like
                                       the other workers.”47 In October
                                                                              SUPPLY CHAIN
daily shifts of up to 12 hours.
    He used to earn R$ 1,045.00,       2016, Almeida signed a Conduct             Maria Julia Pereira sells her
the minimum wage for the cate-         Adjustment Agreement with the          farms’ coffee production to tra-
gory, and claims he was never paid     Labour Prosecution Service in          ding company Exportadora de
for overtime. “In most farms whe-      Minas Gerais (MPT-MG).48               Café Guaxupé. The company
re I lived, you’d get everything ri-       In February 2021, Maria Julia      confirmed that it bought her co-
ght. Not there. Sometimes they’d       Pereira’s lawyer reported to           ffee from the Boa Vista/Coutinho
pay half a month together with         Repórter Brasil that the property      Farms, in Nova Resende, in 2019,
another month. It was always a         continued to be managed by Elias       and Santa Rita das Paineiras, in
mess, confused,” he says.              de Almeida until October 2019,         Muzambinho, in 2020.
    In the lawsuit filed by Marce-     when the lease agreement ended.            The trading company also sta-
lo* against Maria Júlia Pereira at         After that, she resumed the        ted that it has never sourced cof-
the Labour Court of Guaxupé, the       management of the farm, which          fee from the farm where slave la-
judge ruled in favour of the em-       came to be called Santa Rita das       bour was found. On an email, João
ployer in November 2020.               Paineiras. Her lawyer denies           Paulo Custodio de Brito, head of
    According to Celso Antônio         workers’ reports that Córrego          the company’s Sustainability De-
Barbosa Júnior, a lawyer repre-        da Prata was jointly managed by        partment, said: “We have never
senting Marcelo,* during the hea-      Elias de Almeida and Maria Júlia       purchased coffee from the Córre-
ring with the judge, the worker        Pereira. “While the lease contract     go da Prata Farm or from producer
was unable to prove that he had        was in force, Maria Júlia did not      Elias Rodrigo de Almeida.”

                                                     . 18 .
CASE 2 – THE                      2019, 51 workers – including three
                                  teenagers aged 17, 14 and 13 –
                                                                           SUPPLY
CASTELHANA AND                    were rescued from slave-like con-        CHAIN
ALVORADA DO                       ditions at the farm. They were also
                                                                              Ambos os fazendeiros são for-
                                  migrants, had no formal contracts,
CANTA GALO                        and were paid less than the mini-       Both farmers are suppliers of tra-
FARMS                             mum wage. Still, they used to pay       ding company Nutrade Comercial
                                  about R$ 300.00 per month for           Exportadora, a member of the Nu-
   The Castelhana Farm is loca- rented rooms in town. The accom-          coffee program – the name given
ted in Monte Carmelo (MG) and modation was divided between                to Syngenta’s coffee division.
belongs to producer Diogo Tude- whole families and single workers.            Diogo Tudela Neto made sales
la Neto. The property has 1,200       There was no bathroom,              to the company in August and No-
hectares and produces an ave- drinking water or Personal Pro-             vember 2020. That is, shortly after
rage of 20,000 sacks of coffee a tective Equipment (PPE) at work          labour inspectors found 81 unre-
year. The Alvorada do Canta Galo fronts. There was no place to eat        gistered workers on his farm.
Farm is located in Campos Al- either. After the rescue, the em-               Syngenta – Nutrade’s owner –
tos, in the Upper Paranaíba area ployer signed an agreement with          stated that it follows the case of
(MG). Its owner is José Maria Do- the Public Prosecution Service          Diogo Tudela Neto and that it pays
mingos da Silva.                  (MPT) and paid R$ 363,000 as            close attention to “the process of
                                  compensation for individual moral       regularization by the producer and
                                  damages and R$ 500,000 for col-         the possible developments and re-
                                                                          solutions of this case to be able to
THE PROBLEMS                      lective moral damages.49
                                                                          take the necessary measures.”
                                                                              José Maria Domingos da Sil-
    Both properties have under-
gone inspections in the past two     WHAT FARM                            va traded coffee with Nutrade in
                                                                          2020 and 2019 – also after the
years. Unregistered workers were     OWNERS SAY                           inspection operation that found,
found at Castelhana, among other                                          in his case, slave labour. Regarding
irregularities. At Alvorada do Can-      Repórter Brasil contacted the this supplier, the multinational
ta Galo, in turn, dozens of people Tudela Castelhana Coffee group stated that the case was closely
were rescued from slavery.           owned by producer Diogo Tudela monitored by Nucoffee in 2019.
    In July 2020, a team from the Neto by email and telephone but Syngenta also stressed that Silva
Mobile Inspection Group of the received no reply until this report has not been included in the “dir-
Minas Gerais Labour Superinten- was closed. We were unable to ty list” of slave labour and that it
dence found 81 unregistered sea- hear producer José Maria Domin- continues to monitor the case.
sonal workers at Castelhana. They gos da Silva. He was contacted by           The “dirty list” is a federal re-
had left the town of América Dou- Reuters after the rescue but decli- gister usually updated every six
rada in Bahia to harvest coffee and ned to comment.50                     months.51 It is now the main ins-
had been working on the property                                          trument used by companies to
for 37 days without any payment.                                          restrict trade relations with those
    The irregularities found at the
site include unrecorded work hou-    CERTIFICATIONS                       who use slave labour. The docu-
                                                                          ment lists the names of employers
rs, charging for work tools such
as gloves used in harvest, no paid       The Castelhana Farm displays caught in government inspections
                                                                          committing the crime. They are
weekly rest, and lack of toilets and UTZ and Rainforest Alliance logos on only included in the list after an
                                     its website. In response to Repórter
washbasins at work fronts.           Brasil, UTZ stated that the proper- administrative procedure reviews
    The inspection carried out at ty’s certification has expired. Its the inspection operation, which
the Alvorada do Canta Galo Farm Rainforest Alliance license, in turn, guarantees their right of defence.
took place a year earlier. In August has been suspended.                  José Maria Domingos da Silva’s

                                                    . 19 .
administrative procedure has not
been concluded yet.
                                       WHAT THE FARM                          SUPPLY CHAIN
    Asked by Repórter Brasil about     OWNER SAYS                                When slave labour was found,
the destination of the coffee ac-                                             the producer was a member
quired from both employers, the          When the “dirty list” was dis-
                                                                              of the Cerrado Coffee Farmers
trading company did not say which    closed, Helvécio Sebastião Batista
                                                                              Cooperative (Expocaccer), one of
customers the product was sold to.   – owner and administrator of the
                                                                              Brazil’s largest coffee cooperatives
                                     Cedro II Farm – stated that the
                                                                              and exporters.
                                     charge of using slave-like labour
                                                                                 In April 2019, Expocaccer sent
CASE 3 – CEDRO II                    was not true. “It’s all false. These
                                     guys from the Ministry terrorize         a note to Repórter Brasil informing
FARM                                 people who are creating wealth           that it had suspended business
                                                                              operations with the producer and
                                     for this country,” Batista told Re-
                                                                              excluded him from all groups of
    The Cedro II Farm is located in pórter Brasil in April 2019.” My
                                                                              certified and non-certified coffee
the Serra do Salitre area in the so- farm is certified. I hold Nespresso,
                                                                              producers.59 Consulted again for
-called Triângulo Mineiro. Its ow- Starbucks, Rainforest, UTZ. All up
                                                                              the 2021 report, the company
ner is Helvécio Sebastião Batista, to date.”55
                                                                              confirmed that Helvécio Sebastião
who has his own coffee brand –
                                                                              Batista is still suspended.
Café Fazenda Cedro. The product
was even marketed under a subs-
cription-based club for specialty
                                       CERTIFICATIONS
coffees,52 but the business rela-        At the time of the inspec-
tionship was interrupted in April tion, the Cedro II Farm held the            CASE 4 – TERRA
201953 after his name’s inclusion Rainforest Alliance certification.
on the “dirty list” of slave labour When the owner was included in
                                                                              FORTE GROUP
came to light.                       the “dirty list,” the certifier infor-     João Faria da Silva, owner of
                                       med Repórter Brasil that it would the Terra Forte Group, is conside-
                                       suspend his label. The Rainforest red one of the largest individual
THE PROBLEMS                           Alliance label awarded to the Ce- coffee producers in the world. The
                                       dro II Farm was linked to a group São Paulo-based farmer owns Ter-
    In July 2018, an inspection        certification granted by the Cer- ra Forte Importação e Exportação,
operation at the Cedro II Farm         rado Coffee Farmers Cooperative a group that operates in interna-
found six workers in slave-like        (Expocaccer).56                      tional coffee trade, in addition to a
conditions. There were no toilets,         Helvécio Batista was also certi- warehouse and five coffee farms.60
drinking water or places to eat at     fied by UTZ. The label, UTZ said at The company has faced financial
                                       the time, was granted to a proper- problems in recent years. It filed
work fronts. They used to live in
                                       ty adjacent to Cedro II.57           for judicial recovery, which was
poor hygiene conditions according
                                           Batista was also certified by approved in December 2020.61
to the inspectors that rescued         Starbucks’s certification program
them. Work shifts could last from      C.A.F.E. Practices and supplied
6 am to 11 pm, often without any
weekly paid rest.54
                                       coffee to Nespresso, a brand con-
                                       trolled by multinational company
                                                                              THE PROBLEMS
    In addition to the six workers     Nestlé. At the time, Nespresso in-       While João Faria da Silva has
rescued during the operation, la-      formed Repórter Brasil that it had never been caught using slave
bour inspectors found 19 other         suspended coffee purchases from labour or committing serious la-
people in slave-like conditions in     the producer. In a statement, Star- bour irregularities, he is a central
other properties managed by Hel-       bucks said it would look into the character in a land conflict that
vécio Batista. As a result of the      case and, if the facts were confir- threatens the survival of about
rescue at the Cedro II Farm, the       med, its trade relationship with 450 families in Campo do Meio,
owner was included in the “dirty       the property could be suspen- southern Minas Gerais.62
list” of slave labour in April 2019.   ded.58

                                                     . 20 .
The area has been occupied for          session of part of the area and 14          Seasonal workers who live in the
22 years by family farmers and for-         families were evicted. Plantations,     Quilombo Campo Grande camp also
mer employees of sugar company              houses and a school were demo-          report a series of labour irregulari-
Usina Ariadnópolis Açúcar e Álcool          lished after a court ruled in favour    ties in the Terra Forte group’s farms
S/A. The company used to be ma-             of Jovane Moreira.64                    in Campo do Meio. Luciana Ribeiro
naged by Companhia Agropecuária                 At the same time, the business-     Amorim, 47 years old, and Gisele Ro-
Irmãos Azevedo (Capia), which fi-           man leased the area occupied by the     drigues, 23, worked in coffee harvest
led for bankruptcy in 2002 without          landless workers to coffee producer     at the Campo Verde Farm. They say
paying its labour duties. Six years         João Faria da Silva. The contract be-   that there was no toilet, no water
earlier, when its activities were sus-      tween them grants part of the 4,000     to wash their hands and no place to
pended, former employees occu-              hectares of the mill’s total area for   change clothes near the plantation.
pied the area and the Landless Rural        coffee and sugar cane plantations.65    Employees had to buy Personal Pro-
Workers Movement (MST) estab-               Two of the seven farms belonging to     tective Equipment (PPE) themselves.
lished the Quilombo Campo Grande            the Terra Forte group – the Campo       “They used to give us only rakes, sie-
camp on the site.63                         Verde Farm, with 1,056 hectares,        ves and protection glasses,” recalls
    Since then, businessman Jovane          and the São José do Indaiá Farm,        Luciana Amorim. “If you wanted
de Souza Moreira, manager of the            with 620 hectares – are adjacent        anything else, you had to buy it. They
bankruptcy estate of the Ariadnó-           to the camp.66 The agreement be-        won’t give you gloves; they won’t
polis sugar mill, has been fighting in      tween Silva and Moreira was used        give you anything to protect your
court to evict the families. In August      by the judge to justify the eviction    legs and hands.”
this year, a court ordered the repos-       that occurred in August this year.

Aerial photo of ruins of the plant that originated the MST
occupation in Campo do Meio (MG)

                                                             . 21 .
Gisele Rodrigues and Luciana Amorim

    Gisele Rodrigues recalls that
the payment per measure of
                                        CERTIFICATIONS                              In the case of Rainforest Allian-
                                                                               ce, the certification granted is of
harvested coffee is only revea-              The Terra Forte group displays the Chain of Custody type, which
led at the end of the working           at least four certifications on its allows Terra Forte to handle and
week, which made it impossible          website. One of them is Starbu- market coffee from certified far-
for workers to know how much            cks’s C.A.F.E. Practices. In an inter- ms. Terra Forte is also registered
they were working for. “You work        view with Repórter Brasil in Sep- as an intermediate buyer of coffee
on coffee for a whole week and          tember this year,67 Megan Lagesse, certified by German label 4C, whi-
only afterwards you’ll know what        the company’s communications ch stands for Common Code for
your payment is,” she says. “For        and PR manager for Latin America the Coffee Community. According
each measure, which is 60 litres,       and the Caribbean, said that Terra to 4C director Gustavo Bacchi,
he’d say a different value. For         Forte is certified to sell coffees to no batch of 4C coffee was traded
example: you worked on a group          the company and has farms certi- by Terra Forte in 2019 or 2020.
of plants and he’d paid you R$          fied by the program, but she did
17.00 in one place and then R$
10.00 in another. The maximum
                                        not reveal the properties’ names.
                                             In addition to Starbucks’s cer-
                                                                                SUPPLY
he’d pay there was R$ 18.00.”           tification, João Faria’s business       CHAIN
                                        group also holds good practice la-
WHAT THE                                bels from UTZ, Rainforest Alliance          In addition to plantations,
                                        and 4C. UTZ had granted its label to the Terra Forte group directly ex-
COMPANY SAYS                            the Campo Verde Farm in April this ports the product grown on its
                                        year. After Repórter Brasil’s con- farms, as well as coffee purcha-
    Repórter Brasil tried contact the   tact, the organization decided to sed from other rural producers.
Terra Forte group by phone and email    suspend the certification.68 Accor- The company has been one of
about workers’ claims to the repor-     ding to its representatives in Bra- the largest Brazilian coffee ex-
ters but never received any replies     zil, the documents provided by the porters in the past ten years. Its
to its questions. The company did       certifier hired to audit the farm do warehouses in São Paulo and Mi-
not provide any stance on the land      not mention conflicts in the area nas Gerais can store hundreds
conflict in Campo do Meio either.       next to the property. Certification of thousands of coffee sacks.
                                        will remain suspended until an in-          The previous chapter provided
                                        ternal investigation is completed.     a list of cases of rights violations re-

                                                        . 22 .
ROASTERS
lated to suppliers of major trading
companies operating in Brazil – Ex-
                                         NKG                                        UCC
portadora de Café Guaxupé, the               On an email to Repórter Brasil,            The British subsidiary of UCC
Nuccoffe program (Syngenta group),       NKG confirmed its business rela-           replied by email that it had no
the cooperative Expocaccer, and Ter-     tionship with Nucoffee, Expocaccer         direct relationship with and did
ra Forte group. All of them operate      and Exportadora de Café Guaxupé,           not deliberately purchase co-
in the foreign coffee trade and have     but it claimed that no company in          ffee produced on the proper-
customers in the European market.        the group has knowingly bought co-         ties mentioned in this report.
    Repórter Brasil identified the       ffee from the properties mentioned             The company explains that
trade relationship between these ex-     in this report. “NKG’s local trading       green coffee beans originating in
porters and important brokers/roas-      partners in Brasil have assured that       Brazil are purchased by UCC Co-
ters based in Europe. Through them,      they don’t trade with coffee from          ffee Services Switzerland – the
coffee beans are processed and pre-      producers that are on the “lista suja,’”   group’s subsidiary in Switzerland.
pared to be sold in the retail market.   the company’s statement adds.              This company’s suppliers, in turn,
    According to 2019 and 2020 cus-          A world leader in green coffee         include agribusinesses and glo-
toms records, Exportadora de Café        services, NKG claims to be commi-          bal commodity traders that have
Guaxupé supplied coffee during that      tted to “eliminating forced labour         “their own business controls and
period to German multinational           and any other form of labour ri-           policies to mitigate risk in their
Neumann Kaffee Gruppe (NKG),69           ghts violations within [its] sphere        supply chain,” which follow the
which operates in several stages of      of influence” and to require its su-       multinational’s Code of Conduct.75
the supply chain. It also supplied       ppliers to follow the guidelines of            “The green coffee supply chain
German roaster Melitta70 and Swiss       the company’s Code of Conduct.73           is complex, and in some coffee
and German subsidiaries of UCC71 – a                                                growing countries and the agri-
multinational group based in Japan.                                                 culture sector, there are inhe-
    Nucoffee, in turn, supplied co-
ffee to green coffee bean buyer Su-      MELITTA                                    rent social risks and vulnerabili-
                                                                                    ties. Brazil is one of the largest
calina.72 Like Guaxupé, it also traded                                              coffee producing countries in the
coffee with the aforementioned NKG            The Melitta group said it strictly
                                                                                    world and faces its own social,
group and European subsidiaries of       follows controls, protocols and ru-
                                                                                    economic and environmental
roaster UCC.                             les intended to guarantee quality
                                                                                    challenges,” says an excerpt from
    The cooperative Expocaccer is        and reliability in the entire process
                                                                                    the note sent to Repórter Brasil.
another company that supplied            of coffee production and supply.
                                                                                        “We are committed to ethical
coffee to NKG, UCC and Sucafina.         As for the properties and produ-
                                                                                    business practices and mitigating
According to 2019 customs re-            cers mentioned, they replied only
                                                                                    risks in our supply chain within
cords, Terra Forte also traded its       that Exportadora de Café Guaxu-
                                                                                    our sphere of influence. We are
production with UCC.                     pé is one of its suppliers and has
                                                                                    confident in our practices and bu-
    Repórter Brasil contacted the-       subscribed to its Code of Conduct.74
                                                                                    siness controls and […] will conti-
se four importers about the cases             According to an email sent
                                                                                    nue to develop these to support
investigated and that involve their      by spokespersons for the Melitta
                                                                                    the sustained eradication of glo-
supplier networks. The companies’        group, “violation of principles and
                                                                                    bal human rights abuses,” it adds.
stances are presented below.             values stated in the code can result
                                         in excluding the supplier from our
                                         list of approved suppliers for coffee.”

                                                         . 23 .
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